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ENT 314 W Erwin S2020

Terms in this set (42)

Primary reasons to become an entrepreneur
- Desire to be own boss
- Desire to pursue
own ideas
- Financial rewards
Characteristics of successful entrepreneurs
- passion for the business
- product/customer focus
- tenacity despite failure
- execution intelligence
Common Myths about Entrepreneurs
- Entrepreneurs are born, not made
- Entrepreneurs are gamblers
- Entrepreneurs are motivated primarily by money
- Entrepreneurs should be young and energetic
- Entrepreneurs love the spotlight
Types of start-up firms
- Salary Substitute
- Lifestyle
- Entrepreneurial
Qualities of opportunities
- Attractive
- Timely
- Durable
- Anchored in a product or service, or business that creates or adds value for its buyer or end user
Entrepreneurial Process
Step 1: Deciding to become an entrepreneur.
Step 2: Developing successful business ideas.
Step 3: Moving from an idea to an entrepreneurial firm.
Step 4: Managing and growing the entrepreneurial firm.
Ways to identify opportunities
- observing trends
- solving a problem
- finding gaps in the marketplace
Types of trends/forces
- Economic forces
- Social forces
- Technological advances
- Political and regulatory change
Steps to generating ideas
- Preparation
- Incubation
- Insight
- Evaluation
- Elaboration
Feasibility Analysis
The process of determining if a business idea is viable
Components of Feasibility Analysis
- product/service feasibility
- industry/target market feasibility
- organizational feasibility
- financial feasibility
Product/Service Feasibility
- Desirability
- Demand
Industry/Target Market Feasibility
- Industry Attractiveness
- Target Market Attractiveness
organizational feasibility
- Management Prowess
- Resource Sufficiency
financial feasibility
- Total Start-Up Cash
Needed
-Financial Performance of
Similar Businesses
- Overall Financial
Attractiveness of the
Proposed Venture
Concept statement
Business concept, also referred to as the elevator pitch
Definition of business model
Plan/recipe for how business creates, delivers, and captures value for its stakeholders
Categories of business models
- Standard
- Disruptive
Types of business models
- Advertising
- Auction
- Bricks and Clicks
- Franchise
- Freemium
- Low-Cost
-Manufacturer/ Retailer
- Peer-to-Peer
- Razor and Blades
- Subscription
- Traditional Retailer
- Direct-to-Consumer
- Online Text Ads on Search Engines
- One for one
- Software as a Service (SaaS)
- Cloud-based Service to Connect Riders and People Willing to Provide Rides
Components of Business Model Template
- Core Strategy
Business Mission
Basis of Differentiation
Target Market
Product/ Market Scope
- Resources
Core Competency
Key Assets
- Financials
Revenue Streams
Cost Structure
Financing/Funding
- Operations
Product (or service) production
Channels
Key Partners
Toms Shoes (One for one business model)
For Toms they sell one item and they give one item and they achieve this by spending little to no money on advertising
Audience for business plan
- A Firm's Employees
- Investors and other external stakeholders
Purpose of a business plan
- A firm's business plan must make the case that the firm is a good use of an investor's funds or the attention of others.
- A clearly written business plan helps the employees of a firm operate in sync and move forward in a consistent and purposeful manner.
Business Plan Outline
-Executive Summary
- Industry Analysis
- Company Description
- Market Analysis
- Economics of the business
- Marketing Plan
- Design and Development Plan
- Operations Plan
- Management Team and Company Structure
- Overall Schedule
- Financial Projections
Executive Summary
a brief overview of the entire marketing plan
Industry Analysis
Size, growth rate, key success factors, trends
Market Analysis
- Market segments and target market/s
- Competitor analysis
Marketing Plan
- Differentiation
- Marketing message and strategy
- Marketing mix/activities
Company Description
- Company history
- Mission statement
- Products and services
- Current status
- Legal status and ownership
- Key partnerships (if any)
Operations Plan
Day-to-day running of the business ('back-stage' and 'front-stage').
Items to include in this section:
- General approach to operations.
- Business location.
- Facilities and equipment.
Management Team and Company Structure
Founder/s and key management personnel.
Items to include:
- Management team.
- Board of directors.
- Board of advisers.
- Company org structure.
Schedule/Milestones
- Incorporating the venture.
- Completion of prototypes.
- Rental of facilities.
- Obtaining critical financing.
- Starting production.
- Obtaining the first sale.
Financial Projections
- Sources and uses of funds.
- Assumptions sheet.
- Pro forma income statements.
- Pro forma balance sheets.
- Pro forma cash flows.
- Ratio analysis.
Five Competitive Forces Model
- threat of substitutes
- threat of new entrants
- rivalry among existing firms
- bargaining power of suppliers
- bargaining power of buyers
Industry Types
- Emerging Industries
- Fragmented Industries
- Mature Industries
- Declining Industries
- Global Industries
Emerging Industries
Industries in which standard operating procedures have yet to be developed.
- Opportunity: First-mover advantage.
Fragmented Industries
Industries that are characterized by a large number of firms of approximately equal size.
- Opportunity: Consolidation.
Mature Industries
Industries that are experiencing slow or no increase in demand.
- Opportunities: Process innovation and after-sale service innovation.
Declining Industries
Industries that are experiencing a reduction in demand.
- Opportunities: Leadership, establishing a niche market, and pursuing a cost reduction strategy.
Global Industries
Industries that are experiencing significant international sales.
- Opportunities: Multidomestic and global strategies.
Competitor types
- Direct
- Indirect
- Future
Sources of competitive intelligence and industry information
- Attend conferences and trade shows.
- Purchase competitors' products.
- Study competitors' Web sites and social media sites.
- Set up Google email alerts.
- Read industry-related books, magazines, and Web sites.
- Talk to customers about what motivated them to buy your product as opposed to your competitor's product.
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